Northline Commons heralds a change of pace for old mall

Published 5:30 am, Sunday, June 24, 2007

Recently, workers removed the old sign identifying Northline Mall and replaced it with a new one reading Northline Commons, signifying a fresh start for one of Houston's oldest shopping centers.

More than a year ago, the mall's owners said they would redevelop the 1960s property by tearing it down and starting from scratch with a more open, outdoor concept.

The property is north of Loop 610 at Interstate 45 and Crosstimbers, an area that has suffered economically, said Rebecca Victor, general manager of the mall.

"But that environment's been changing," she said. "This redevelopment is going to give it a shot in the arm."

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Some new shopping space on the nearly 80-acre site has already been built and is housing tenants formerly in the mall, which is expected to be demolished this year and replaced by more shops. In all, about 800,000 square feet of new space will be added.

Though some tenants will remain in the center, including Palais Royal, a new tenant roster includes Marshalls, Ross, Conn's and Office Depot, according to Fidelis Realty Partners.

Fidelis has been leading the redevelopment, leasing the space and is a limited partner.

Wal-Mart Stores purchased 19 acres from the owners for a Supercenter, which will be at Crosstimbers and Fulton, adjacent to new multitenant retail buildings.

Houston defies slump

With all the negative reports on the nation's housing slump, it wouldn't be unnatural for shoppers to get the jitters before buying homes.

But according to a national study measuring the likelihood of home price declines, Houston ranks as one of the least risky housing markets in the country.

"Houston has one of the lowest probabilities of price decline," said LaVaughn Henry, director of economic analysis for PMI Mortgage Insurance Co., which ranked the country's 50 largest metropolitan statistical areas.

In the first quarter of 2007, overall home prices here had a 7.9 percent possibility of being lower in the next two years, according to the Summer 2007 U.S. Market Risk Index by the Walnut Creek, Calif.-based subsidiary of the PMI Group.

Houston ranked 47th among the 50 markets studied.

Riverside, Calif., Phoenix, Las Vegas and West Palm Beach, Fla., ranked highest on the index with a 60 percent or greater chance that home prices will be lower in two years.

To determine its rankings, the company looked at home price volatility over the past five years, affordability and local employment in each market.

What the areas with the greatest risk of decline had in common was a history of big fluctuations in prices — something Houston hasn't seen.

Parkway land for sale

Insurance giant AIG is selling a long-held 13.5-acre parcel of land just south of its Allen Parkway campus.

The company hasn't put a price on the land, but other parcels along Allen Parkway and Memorial have sold in the $80 to $115 per-square-foot range.

With frontage on Waugh, West Dallas and Montrose, the sellers should expect multiple offers, said David Cook, one in a team of real estate brokers with Cushman & Wakefield who are marketing the property.

The land could potentially be the second large parcel to be redeveloped in the area.

A Boston real estate firm is tearing down the 24-acre Allen House Apartments to build a walkable neighborhood of apartments, condominiums, shops and a boutique
hotel.